VA Home Loans

1. Why VA Home Loans — A Complete List Of VA Benefits For most military members, VA mortgages act as a safe and guaranteed path for home ownership. Backed by the US Department of Veterans Affairs and providing a list of astounding VA benefits, these loan programs have gained quite a momentum, especially in recent years. Let’s take a look at the most popular benefits associated with a VA loan. BENEFITS OF A VA LOAN $0 DOWN PAYMENT OPTION Most conventional loans would require an applicant to pay a certain amount as a down payment. However, because of the nature of their job, most military members do not have enough resources to meet these requirements. A VA mortgage, on the other hand, allows its applicants to borrow a mortgage without paying any down payment. This

2. remarkable VA benefit lets most Veterans fulfill their American dream without spending years to accumulate the required cash. NO PMI REQUIREMENTS One of the downsides of an FHA loan requires applicants to pay both upfront and annual Private Mortgage Insurance (PMI). Moreover, in the case of a conventional loan, it is mandatory to pay the insurance unless the applicant is willing to pay at least 20% of the loan amount as a down payment. However, with a VA loan, you don’t have to worry about spending thousands of dollars for an insurance, even if you choose the no down option. According to several estimates, Veterans with VA home loans can secure up to $40 billion with this VA benefit. LOWER INTEREST RATES VA mortgages are guaranteed by the department but provided by VA-approved private lenders. However, the VA always makes sure that the loan interest is the lowest compared to any other mortgage facility available in the market.

3. Most VA loan interest rates are usually 0.5 to 1% lower than a conventional loan. Moreover, if a borrower defaults in any way, the department will pay a certain amount of the loan back to the lender. This makes it easier for a lender to provide competitive interest rates. LOWER CREDIT REQUIREMENTS Although the VA does not impose any credit score requirements on its applicants, some private lenders might expect you have a minimum credit score of at least 620. However, an applicant without the minimum score can also borrow a VA loan. Moreover, aside from credit scores, other requirements are also quite lenient. In fact, these loans are also available to those who have had a foreclosure, bankruptcy or short sale before. LOWER CLOSING COSTS As compared to other conventional loans, the closing costs of a VA-backed mortgage are comparatively lower than other mortgages available in the market. SUMMING UP Available in various types (Purchase, IRRRL or cash-out), these loan programs comes with a list of VA benefits. Apart

4. from the benefits stated above, VA mortgages also provide lifetime benefits, comes with no pre penalty charges and are the safest loan available in the market.